The Australian Prudential Regulation Authority (APRA) has started its second consultation on revisions to the Standard SPS 250 Insurance in Superannuation (SPS 250).
According to APRA, the proposed changes aim to improve superannuation member outcomes by helping trustees select the most appropriate insurance policies for their members and monitor their relationships with insurers.
The main changes to the standard address two recommendations from the financial services Royal Commission, reflect government recommendations that trustees make it easier for members to take out insurance, and ensure that premiums do not inappropriately consume members' retirement income.
APRA began its consultation on proposed changes to SPS 250 in November 2019. Its new draft prudential standard incorporates revised wording that aims to clarify some of the revised requirements of SPS 250.
The regulator has also released an updated version of Prudential Practice Guide SPG 250 Insurance in Superannuation (SPG 250) for consultation, which contains further guidance on the new proposed requirements.
Submissions on the SPS 250 and the accompanying prudential practice guide are open until March 05, 2021. APRA aims to finalise both documents by the middle of the year, with the final version of SPS 250 expected to commence from January 01, 2022.
